Transdev loses €1.75bn Luas contract after running tram service for 22 years - reports

Luas operator Transdev has lost out on the €1.75 billion Luas contract after 22 years running the service, it has been reported.

The group branded it  “very disappointing news” to staff, according to The Irish Times.

Sources told the paper that a British and French joint venture between Amey and Keolis has been selected as the preferred bidder and is set to take over the operation of the contract later this year.

The pair have run the Docklands Light Railway in London since 2014 as part of a separate joint venture led by the French company.

State agency Transport Infrastructure Ireland (TII) began to seek a new operator for the contract in 2023 to operate and maintain the Luas service.

The deal will run from mid 2026 for an initial seven years with an option to renew for five to seven more years, according to the reports.

Transdev declined to comment when contacted by The Irish Times.

The paper said the French company notified staff that it had not been selected as the preferred bidder for the contract in an email on Thursday morning.

“This is clearly very disappointing news for our company,” Transdev told staff, according to the paper.

“We are proud of the service we provide every day and of the role our teams have played in operating and developing Luas over more than two decades, maintaining a strong safety record and supporting the growth of the Luas light rail network across Dublin.”

Staff were told that the process now enters a 14-day mandatory standstill period in line with public procurement rules, during which bidders can review the decision.

“We will carefully consider the outcome and assess our position over the coming days,” Transdev said.

The operator also said nothing will change for staff in their day-to-day operations for now.

"Our priority remains delivering a safe, reliable and high-quality service for passengers and communities across Dublin."

“We will communicate again once the standstill period has concluded and we are in a position to outline next steps and what this means for the company and for employees,” staff were told.

The Irish Times understands that staff at the company will transfer to the new operator.

TII declined to comment to the paper, and the NTA, Amey and Keolis were also contacted for comment.